StoneX initiated coverage on Robinhood with a buy rating and a target price of $170

StoneX analyst Mark Palmer initiated coverage of Robinhood with a buy rating and a target price of $170, implying about a 45% upside from Tuesday's closing price of $117.34. Palmer noted that Robinhood is expanding from retail trading services to acquire exchanges and blockchain infrastructure with software profit margins.Robinhood Chain launched its mainnet on July 1, generating more Gas fee revenue in the past 24 hours than all other Ethereum Layer 2s combined. As of September 3, the chain's daily fee revenue was approximately $4.59 million, with an annualized revenue close to $39 million as of August 29. StoneX predicts that Robinhood Chain could generate $980 million in revenue by fiscal year 2029, with a profit margin of 85%.In the prediction market, Robinhood traded 13.6 billion event contracts in the second quarter, with over 5 billion contracts traded during the World Cup period alone, generating approximately $156 million in revenue, a 50% quarter-over-quarter increase. On Tuesday, Robinhood announced partnerships with Crypto.com and OG.com, investing in both companies and routing some event contracts to OG.com. Previously, Bernstein analysts also maintained a rating of outperform for Robinhood, with a target price of $160.